This week was difficult in the Northern Cheapskate house.
Despite our scrimping and saving and planning, we had to do something we haven’t done for 7 years.
And it broke my heart.
We had to borrow money.
We haven’t had any debt except for our mortgage since we paid off our vehicles seven years ago. When you live on a single income (and just the little bit extra I earn through this blog and freelance writing), being free from debt is a big deal. It means you have a little bit more wiggle room in the budget to save for family vacations, retirement, or new cars.
When we paid off our vehicles all those years ago, we swore we would never have another car payment. We made a plan to start saving money toward our next “new-to-us” vehicles. We did a decent job of saving, but as, John Lennon says, “Life is what happens when you’re busy making other plans.” We had an expensive and unexpected repair to our garage foundation, several car accidents, and a transmission replacement. With each setback, we began to save again.
So last weekend when I drove our son to Urgent Care with a suspected ear infection, I noticed the car sounded loud. My husband, who drives this car most of the time, said he had noticed the noise recently, but figured he’d get it looked at the next time he got an oil change (which was due soon). I told him that it sounded a bit more serious and he agreed to take it to get looked at the next day.
My fears were confirmed. It was recommended that we not drive the car until we made the repair, which would cost $4,300.
This 2008 car had 137,000 miles on it. The “good” condition trade-in value was $4,000. We had already put more than $5,000 in repairs into it in the last 2 years and it needed new tires soon. Investing more into the car than it was worth didn’t seem like a great use of our money, especially when we had that looming, “What will go wrong next?” feeling.
This repair caught us by surprise. While we had been saving for this car’s replacement, we were counting on this vehicle lasting us at least another two years. We were not mentally or financially as prepared as we would have liked to make a decision, and to make it quickly.
Living with one car wasn’t an option. We live in a remote area. My husband works in a town 26 miles east of our home. The kids go to school 27 miles west of our home. We are always driving somewhere for something. We need reliable transportation.
Since both of our cars were aging, we had spent a little bit of time researching and dreaming about our next vehicles, so we had some idea of what we would look for in a new-to-us car. Armed with that knowledge, we spent a grueling 24 hours talking, debating and plotting possible solutions. We did some research and called auto repair shops to see if we could get a better price for the repair, but the response was the same. We looked for used cars we could afford to buy in cash, but they were all too expensive for their condition and mileage.
We finally found two cars – one brand new and one slightly used that we were interested in, but we would have to borrow some of the money to pay for them. After test drives and more discussion, we decided that the slightly used model was the best fit for us. It was a 2015 model, low in miles, in great condition with high customer satisfaction, and was a reliable model that will last a good long time. It also had safety features our older cars never had.
So after much anguish, discussion, and calculating, we are back in debt.
Friends and family asked if I was excited to get a “new” car.
I actually felt more sick than excited. I love the car, but for the past 8 years, I’ve extolled the virtues of paying for things with cash and staying out of debt. And now I felt like a total hypocrite. I was disappointment in myself. It was way too easy to sign those papers. Maybe I should have shopped more for a better deal. I should have worked harder to save more. Maybe I shouldn’t have let my emotions rush me into making a decision. I am extremely anxious about having a payment. Maybe my readers will stop reading now that they know I quit practicing what I preached.
And then I took a deep breath and I cried a little. I took another deep breath. I prayed. I thought about my situation.
Was it the best financial decision to borrow money to buy a “new” car now? Maybe not. But it was the best decision for our family out of all the options available to us.
Does this setback mean I’m not who I thought I was? No. I still believe that living debt-free brings immense freedom, and I will fight for that freedom again. I’m not perfect, and (I hope) you don’t expect me to be. This is a setback, but it doesn’t change my end game.
Am I happy about owing money again? Absolutely not. But I am pretty proud of the fact that we were able to make a $10,000 down payment. Not everyone can do that. It takes some of the sting out of the price of vehicle.
I am disappointed in how this situation played out, but I take full responsibility for it, and we will do everything we can to pay off that loan just soon as we can.
You see, it’s not just money I owe to a bank. It’s something I owe to myself and all of you.
I don’t feel let down by you at all. Thanks so much for sharing your story. I would be disappointed if you hadn’t shared. it’s because of your honesty that you’ll remain one of my two go to bloggers when I need sound advice and encouragement. Cut yourself some slack, Christina you’re doing alright. Also, as I read this post I couldn’t help but thinking, you can’t put a price on safety. And once again you demonstrated the right thing to do. Thank you.
Thank you so much for your kind words, JoAnn. You made me teary-eyed! I appreciate readers like you more than you’ll ever know!
You didn’t ‘let your emotions rush you into a decision.’ You had no choice but to make a decision quickly, and I think you made the right one.
Thank you, Marta! Your words help make this a little easier.
Yeah, I know this feeling or at least anticipate it. Our cars are pretty old and we’ve been really lucky so far. We’ve got some money stashed away toward replacement car(s) but I know it’s not enough, and while we’ve been directing more toward it, the gap is still there. So, I get it. Sorry you had to go through that, but honestly, having reliable transportation, especially in rural areas, is very important for you and your family.
Thanks, Money Beagle. I’ll say a little prayer that you’re able to make your cars go long enough to have enough money saved. This debt business is no fun!
We are looking at the same thing here. You have to do what is best for your family. We live rural here and I have a disabled child. My van is 15 years old and 245,000 miles. We just fixed the water pump. We never could save to buy another. Life like you say. So we are looking for a good deal, and we will pay it off early if we can. We did with the van.
It can be really tough to save up when you have extra expenses on top of everything else. Sounds like you have a good plan.
Like you said it was the best decision for your family….public transportation, not an option. Too far out for biking. However, unlike many others out there in the world, you are so smart and flexible in that you will able to guide your family with this unexpected bump in the road once again to financial freedom. I VERY much appreciate your honesty in your blog and that is why I read it over others. In my eyes, life isn’t really a straight line but a sine wave – so let’s go surfing :-)
I love the surfing analogy! Time to get back up on the board!
$10,000 is a lot of money and I just have to ask why you didn’t find a car that you could just outright buy for that amount or under and not finance something?
You’re right – it is a lot of money. I live in a rural area where there’s not a lot of inventory to choose from. We spent above that amount because we couldn’t find a vehicle with a reasonable amount of miles that we liked. If we had found something(and we checked a 60 mile radius) that met our criteria and we could pay cash, you could bet we would be driving that car right now.
Fair enough! I too am very rural- not too far from you actually:) I read both you and your husbands blogs and enjoy them both!
We could have “settled” – but we just drive way too many miles to risk spending all that money and then having to do a lot of repairs. Thanks for reading our blogs, Steph!
I have been reading Dave Ramsey’s “Total Money Makeover” so I blame that for the question:) I hope you didn’t think it rude! I was just curious. I love rural living but yes, it does lead to some miles being put on your vehicles!
Didn’t think you were rude at all! It was a question that I asked myself, and I think it’s a good thing for you to ask!
I liken it to old man Murphy, the one from Murphy’s Law, you know? Seems like he’s always lurking, hiding behind a tree, just waiting to spring something unexpected on you. But, it sounds like your car gave you a good run. You must have taken care of it, and kept the oil changed. I commend you on your decision to buy a slightly used new car. Think of it this way- EVERYONE drives a used car! So much more sensible that going into debt for 5 or 6 years for a “new” new car. You are smart!
We do try to maintain our vehicles- we have to if we want them to last. I like buying slightly used cars because they depreciate so fast anyway!
The fact that you are agonizing over your disappointment just proves that you definitely ARE still who you think you are. And you weren’t afraid to share it with us – thanks for keepin’ it real! :)
Thank you, Angie. It’s hard when you’re hard on yourself! :-)
Vehicle repairs/replacement costs always seem to happen when we least expect them. It stinks to be in debt again, but at least you had a hefty down payment. You should pat yourself on the back for having that amount saved and not feel so guilty about having to borrow the balance. With your fantastic ability to save, you will have it paid off in no time.
Thanks for the encouragement, Clair!
God bless you, Christina. If you didn’t agonise over your decision then you wouldn’t be who you are!
I’m a recent convert to your blog and loving feeling the support you deliver as I work on sticking to our budget and getting to be debt free. I live in Australia and spent 20 years living rurally and Australian country roads wrecked our cars so quickly. Now back in the outskirts of a smaller city and the living costs are different and require careful management and other ways. Thank you. I appreciate how your experiences help us stick to our plans.
Welcome to the blog, Annemaria! And thank you so much for your kind words and encouragement. Sometimes when you’re writing, you’re not sure if you’re just talking to yourself! Glad to know there are others out there who can relate!
All our vehicles are old. Your down payment is probably what we paid for for both our vehicles. :) But most things we drive to are within 10 miles each way and we are centrally located to being within an hour of the Cities, Rochester & Mankato which makes it easier to find a used vehicle, plus my husband has a craigslist obsession so he is always on the prowl for a new vehicle and researching what we can get out there for a good deal. Plus, I think we are lucky that he has taught himself over the years of project cars how to do a lot of things and what he doesn’t know how to do he can do a little research and figure it out, unless of course it’s too big of a job and the cost for a mechanic is too high – then it’s back to craigslist.
That is fantastic that your husband is mechanically inclined. My hubby and I are not, and there’s a price you pay for that, that’s for sure! I think our situation would have been a lot different had we had a little more time and lived near a metro area – there would have been more choices. It’s a price you pay for living in a rural area.
I’m new to your blog and happened upon your story. The point I see is that you shouldered an unexpected financial blow BECAUSE you were financially responsible. What if you hadn’t saved $10,000? What if you didn’t have good credit? What the situation demonstrated is you were able to withstand a financial blow because of how you have been living for quite a while.
Welcome, Eschelle! And thanks for your support. The situation would have been much worse if we hadn’t had money saved. The scary part is knowing how long it took us to save that money! But we can do it again!
You owe it to your family to have reliable transportation. Breaking down at 20 below is no joke.
It’s a setback, not a game-ender. Writing about it will help others who have had/will have similar wrenches thrown at them. Seeing you handle it calmly and intelligently will help them make the right decisions, too.
Thanks, Donna! I appreciate the gentle reminders. And you’re right… I’ve been broken down in 20 below weather… it is NOT fun.
Hey there! As others have said above, be easy on yourself! We all try our best, but we will never be absolutely perfect. Hope you find a way to enjoy your ‘new-to-you’ vehicle! Nice John Lennon reference by the way ;)